more education vs. second job, mid-career
I've been toying with either getting a second job or going back to school evenings and weekends.
I already make good money, in a stable job with benefits and a pension, and I live well below my means, saving a great deal of my net income. I have no intention of leaving my primary job.
Taking a second job, working a couple of 10 hour shifts each weekend at minimum wage, would gross $800/month, $9,600/year. Taking off 40% for tax leaves $5,760 extra a year. That could all go to savings and compound over 25 years. (I come up with about $360,000 compounded at 6.5%)
I don't have hard numbers to back this up but I'm getting the feeling the added schooling wouldn't net as much in the 20 years I have until retirement as the second job would; I wouldn't be getting a PhD or anything specialized enough to justify a massive salary bump.
Anyone here else go through this before or in the midst of it now?
What did you decide to do?
The first question is if you can see yourself doing this current job for a long time.
The next question is where your pay is in relation to the pay range. Would getting more education allow you to do more of what you enjoy and still be paid well for it? Or would it allow you the option to switch careers, just in case? Additional work for min. wage probably isn't worth it unless you can't pick up additional hours in your primary job which may translate to promotion or higher rate.
I'd use the excess time to develop some side business.
Given I remember your primary job correctly, going back to school would definitely not net you much of anything if you stayed there.
If you are already living well below your means, why not take the 10 hour shifts each weekend and put it towards something you like, say fly fishing?
School may not net you much pay increase but it can be quite rewarding if you are that type of person.
That's just how this (very) young guy sees it.
To clarify: the additional income would be put into savings to move my retirement up.
Further education would increase my mobility with my employer but I'm not convinced I want to move any higher in the organization I'm in.
Too many headaches for too little return. I like leaving my work at work at the end of the day.
What I was trying to get other opinions on, however, was the cost/benefit of school in the long run. With only 20 more years left until retirement, I'm not convinced added schooling would ever pay for itself.
A second job - bartending, doorman, whatever - would be another job I could leave behind when I walk out the door.
There is a limit to the value of money. I have no idea what your retirement plans are exactly but I do not have the intention of retiring 100%, at least not at first. That gives me 10-15 years that I want to do something else - in my case either working with at risk kids or preaching (or both). My education is important to these and I enjoy it. The pay cut I will have to take to do either is part of my retirement planning.
Thought about franchising? I have a Lemonade stand as my full time job, there is already a franchisee in Ottawa, but she just does the Senators and the junior team. Some weekends at a hot spot in the summer would make you money. I paid off a new trailer I ordered in five days this summer ;)
This was a few years ago after 10 days of selling, wasn't just from a lemonade stand lol
Ahhh, I wouldn't go back to school personally lol, but I also wouldn't take on a second job I hated just to put money away.
What about taking on a Vendor job at the Sens arena? Here they pay their Vendors a flat rate of $30 a game, but they usually make between $100-200 per game in tips selling beer in the seats. Plus you sit and watch the games during play and sell between whistles ;)
Just need the NHL back for that though lol
An extra $5,700/year from a minimum wage job compounds to $360,000 over 25 years (assuming 6.5% annualized returns). You couldn't live on that alone in retirement but it would be a massive boost to the nest egg.
Conversely, the cost of going back to school would be a big chunk of change that isn't growing.
Too bad we don't have an MLB team up here. I'd hock peanuts at one of those.
I live a 2 minute crawl from the centre of the night club, bar and pub scene so one of those is a better bet ... though I think the hours are going to be incompatible with a 9-5 job.
You don't have to like Hockey, you just need to take their money lol.
I wish I could live more frugally, once everything is paid off Ill start saving, I spend far too much right now lol
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